A broad interpretation of the rights of third-party beneficiaries holds that users whom the auditor should have been able to foresee as being likely users of financial statements have the same rights as those with privity of contract. This is known as the concept of

Question

Quizplus · Accepted Answer

The concept of foreseeable users holds that users whom the auditor should have been able to foresee as being likely users of financial statements have the same rights as those with privity of contract. This interpretation broadens the scope of the auditor's responsibility beyond only those in direct contractual relationship with the auditor.

A Broad Interpretation of the Rights of Third-Party Beneficiaries Holds